Over the past few decades, chargeback fraud from buyers has been
identified as a major risk faced by online sellers, particularly small‐
and medium‐sized enterprises, in cross‐border electronic commerce.
However, most previous studies have focused on trust and
perceived risk from the buyers' perspective and in domestic online
marketplaces, while neglecting the importance of sellers' trust and
perceived risk in the success of online transactions and the significance
of cross‐border transactions. To fill this gap in the literature,
this study examines both the antecedents and the impacts of sellers'
trust in buyers and their perceived risk of chargeback fraud on sellers'
intention to trade with buyers in the context of cross‐border
e‐commerce. To this end, we develop a conceptual model that
identifies a set of institutional mechanisms to enhance sellers' trust
and reduce their perceived risk. Hypotheses are tested via a survey of
443 sellers on DHgate.com, one of the major cross‐border e‐commerce
websites connecting the small‐ and medium‐sized enterprises of mainland
China with overseas buyers. Our research makes concrete contributions
to e‐commerce research and generates useful insights for
third‐party online transaction platforms and online trade policy makers.